Home Building Trends to Watch for in 2024

In 2024, the residential construction industry stands at the brink of a paradigm shift, poised for groundbreaking changes fueled by evolving consumer preferences, workforce dynamics, sustainability imperatives, and technological strides.

Constructing the future

The residential construction industry is primed for innovation and transformation in 2024, driven by changing consumer demands, labor force challenges, sustainability concerns, and technological advancements. This blog will take an in-depth look at the top trends impacting home builders, remodelers, developers, trade contractors, and the housing market.

Sustainability and green building

Sustainable building practices will become standard as homebuyers seek energy efficiency, renewable energy integration, water conservation, and reduced environmental impact. Homes will incorporate solar panels, EnergyStar-rated windows/appliances, tankless water heaters, EV chargers, drought-tolerant landscaping, and more.

• Impact: Builders and remodelers must become well-versed in green building techniques, materials, and certifications like LEED, Passive House, and Net Zero standards. Investing in sustainability training and resources for sales/estimator teams would be advantageous.
• Technology: Energy modeling software, renewable energy design tools, green building product databases.

Prefabrication and modular construction

Prefabricated components like wall panels, trusses, and bathroom “pods” allow for faster, more precise construction. Modular homes built offsite in sections can also significantly accelerate housing development.

• Impact: Transitioning from traditional stick-built construction requires upfront investment in prefab capabilities and recalibrating supplier relationships and logistics. But prefab can pay off with faster project timelines and potentially higher profit margins.
• Technology: BIM software, 3D modeling tools, and customer configurators for home personalization.

Smart home tech

Integrating smart home tech like networked lighting, thermostats, security systems, cameras, and appliances allows homeowners seamless control and energy efficiency monitoring.

• Impact: Builders must build partnerships with smart home vendors and become well-versed in cost-effective integration of these automated systems during construction. Smart home setup/support may also become a profit center.
• Technology: Smart home platforms and devices from major vendors like Amazon, Google, Apple, etc.

Aging-in-place design

America’s aging population will drive demand for accessible, convenient home features, allowing seniors to age in place comfortably. Elements like minimal stairs, walk-in showers, thoughtful storage layouts, large master suites, and multifunctional spaces cater to this need.

• Impact: Builders specializing in 55+ housing and renovators will need expertise in senior-centric design elements and marketing. Developing relationships with occupational therapists and elder care providers could also help inform appropriate age-friendly design.
• Technology: Home design software with accessibility feature libraries.

Affordable housing solutions

Developers must employ every tool available to increase affordable housing stock, from building smaller units and leveraging alternative construction methods to capitalizing on subsidies/grants and creatively repurposing existing structures.

• Impact: Partnering with local housing agencies and policymakers will be essential to take advantage of public funding opportunities and incentives for affordable development. Evergreen construction loans can provide the flexibility these long-term projects require.
• Technology: BIM and design software to optimize small space layouts; mobile apps to allow home sharing and co-living arrangements.

Labor shortages and workforce development

The labor shortage in the construction industry will push builders and contractors to automate where possible while expanding recruiting and training programs, exploring apprenticeships for youth/veterans, and tapping into new demographics like women and minorities.

• Impact: Taking an active role in local schools and vocational programs to promote construction careers is a must, as is nurturing a welcoming, supportive company culture. Evaluating compensation, benefits, and retention strategies will also be key to attracting talent.
• Technology: Online training platforms and simulators; recruiting tools leveraging social media and digital marketing.

Building information modeling (BIM)

BIM and similar digital construction platforms will replace paper plans and 2D drawings with comprehensive 3D building models, facilitating collaboration and identifying constructability issues in advance.

• Impact: The learning curve is steep, but the time and cost savings make adopting BIM software essential. Dedicating resources to training teams on creating and managing complex digital models will enable you to stay competitive.
• Technology: BIM software platforms like Revit, Navisworks, and BIM 360.

Construction robotics and automation

Robots and autonomous equipment like bricklaying machines and exoskeletons reduce injury risk, and drone surveying sites can boost productivity and safety as labor shortages continue.

• Impact: Phasing in emerging robotic technologies while transparently involving onsite crews in the transition will be critical. Leveraging automation without displacement requires a balanced approach.
• Technology: Robotics platforms from construction tech firms like Built Robotics, Dusty Robotics, etc.

Data-driven decision-making and project management

Incorporating data analytics into planning, budgeting, scheduling, and supply chain management will enable more profitable, less risky projects. Insights from digital platforms can optimize the project’s lifecycle.

• Impact: Construction software investments will be required to aggregate data from disparate sources and generate actionable insights. However, the productivity and risk reduction payoff makes the tools well worth it.
• Technology: ERP, project management, inventory and analytics software, AI, and machine learning.

Offsite manufacturing and supply chain optimization

Transitioning from expensive onsite production to efficient offsite component manufacturing will require close collaboration with suppliers, manufacturers, subcontractors, and logistics providers.

• Impact: Investing in transportation infrastructure and digital connectivity will help coordinate just-in-time delivery of parts and materials. Supply chain transparency and proactive risk management have also become more critical.
• Technology: IoT sensors provide real-time supply chain visibility and logistics management software.

Bottom line

The residential construction industry will see massive transformation in 2024 as firms embrace emerging trends and technologies to meet changing consumer demand while contending with cost/risk pressures. Companies willing to be proactive and forward-thinking in their strategies and operations will gain a competitive advantage in the housing marketplace of the future. Executing these trends calls for careful change management and significant investment - but the payoff will be sustaining a thriving, cutting-edge construction business.